7 Palabala prepares monthly cash budgets. Relevamt data from assumed operating budges8 for the first two months of the 2022 are as follows:9Sales1 Direct Materials Purchases2 Direct Labour3 Manufacturing Overhead4 Depreciation5January February$100,000 $150,000$50,000$60,000$20,000$30,000$10,000$15,000$5,000 $3,5006 All sales are 50% cash 50% in the month following sale.38 All Expenses are paid in the month of sale9Sales for December was $80,00012 Direct Materials purchases for December was $40,00034 Cash balance on 1st January 2022 was $20,000.5 Required:6 Prepare the cash budget for the two (2) months January to February 2022.7

Purpose of creating cash budget is to analyze cash inflow and outflow of cash transactions. This…

Palabala prepares monthly cash budgets. Relevamt data from assumed operating budges for the first two months of the 2022 are as follows: Sales Direct Materials Purchases Direct Labour Manufacturing Overhead Depreciation January February $100,000 $150,000 $50,000 $60,000 $20,000 $30,000 $10,000 $15,000 $5,000 $3,500 All sales are 50% cash 50% in the month following sale. All Expenses are paid in the month of sale Sales for December was $80,000 Direct Materials purchases for December was $40,000 Cash balance on 1st January 2022 was $20,000. Required: Prepare the cash budget for the two (2) months January to February 2022.

Palabala prepares monthly cash budgets. Relevamt data from assumed operating budges for the first two months of the 2022 are as follows: Sales Direct Materials Purchases Direct Labour Manufacturing Overhead Depreciation January February $100,000 $150,000 $50,000 $60,000 $20,000 $30,000 $10,000 $15,000 $5,000 $3,500 All sales are 50% cash 50% in the month following sale. All Expenses are paid in the month of sale Sales for December was $80,000 Direct Materials purchases for December was $40,000 Cash balance on 1st January 2022 was $20,000. Required: Prepare the cash budget for the two (2) months January to February 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6
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